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You cannot each borrow half on the same property.
What you must do is borrow the full amount with both names on title.
The issue is that when you borrow to buy your next property you will be assessed as owing the full amount on the first one. It may hurt your serviceability.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thank you,
Since i wrote that ive have been talking to a freind and he said that this sort of thing is often refered two as a joint venture.
Could you plase explain how a “joint venture” worksthanks
StephenA joint venture is just two or more parties doing business together. These sorts of things are best done with somesort of document outlining the roles and responsibilies of the parties. Look out for what sort of things could go wrong, and paln for them. eg. what if one party wants out in year 3, do you sell the property, sell your half to the other or sell to a third party. These are the sorts of things that can cause rifts between the parties, and you don’t want this to happen, especially with family.
Terryw
Discover Home Loans
Parramatta
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Hi every one, I have some question, I want to buy a property with one of my friends 5050, can we tittle under both name but just I applying for the loan? or he say lets register just under your name, what is happen later? thank you.[thumbsupanim]
Hi every one, I have some question, I want to buy a property with one of my friends 5050, can we tittle under both name but just I applying for the loan? or he say lets register just under your name, what is happen later? thank you.[thumbsupanim]
Unfortunately everyone on title has to go on loan,
Terryw
Discover Home Loans
Parramatta
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Hi Steven051,
Im only a law student so I cant give you legal advice.
However, you should understand the difference between “Joint Tenants” and “Tenants in Common”
in the shortest possible way and without knowing your individual circumstance, in essence they the type of ownership structure over the asset will have certain consequences.
Most notable of this is how the assets are distributed should one of you (knock on wood it doesn’t happen) become deceased.
Just a few comment and examples
if you bought under Joint tenants you can specify the % you each own. Specifiy the ownership of the “seisen” or essence of the property. This can be distributed to as many joint tenants and in any proportion.
Alternately if you bought in Tenants in Common you would all share the seisen equally. This can be shared by as many people that you wnat aswell.
The key difference is what happens when one party becomes deceased.
If you and your dad buy the property as joint tenants if one of you dies the other still only owns his specified amount of the seisen. the rest is distributed by your will/estate.
If you buy as tenants in common if one of you dies then the property is reverted to the other by default (as homer simpson say “my two favourite words DE FAULT” lol), this is know as right of surviourship or sumthing like that.
But ask you Lawyer more.
Kind Regards
Luan M Cao
http://www.ampg.com.au
http://www.wholesaleproperty.com.auThis is a subject my husband and I know well. My husband and his family went partners in a house signing the contracts as tenants in common. However his father decided shortly after that he didn’t want to pay any of the mortgage( in everyones name) and he refused to sell it ( you need everyone’s consent before you can sell). It took five years to convince him to sell,while we were looking after the property and paying the expenses, in which time we found out that he had put a second mortgage on his half of the house. In the end his father walked out with half the profits(a tidy sum) because we couldn’t afford the court battle, and his father refused to have a solicitor represent the sale (again needs everyones consent). My husband didn’t believe his father was capable of this and it has torn their relationship.
Originally posted by carlee:This is a subject my husband and I know well. My husband and his family went partners in a house signing the contracts as tenants in common. However his father decided shortly after that he didn’t want to pay any of the mortgage( in everyones name) and he refused to sell it ( you need everyone’s consent before you can sell). It took five years to convince him to sell,while we were looking after the property and paying the expenses, in which time we found out that he had put a second mortgage on his half of the house. In the end his father walked out with half the profits(a tidy sum) because we couldn’t afford the court battle, and his father refused to have a solicitor represent the sale (again needs everyones consent). My husband didn’t believe his father was capable of this and it has torn their relationship.
Hi carlee,
Thats a sad situation to be in [crying], and it does happen. I had a IP in Phillip Island with my father and before I got married I disposed of it as my wife (and I) were concerned about what ‘may’ happen if the relationship between my father and ‘us’ soured (as it turned it he seperated from my mum, and took up a little chinese student PI portfolio with his new lady friend who is finacially aggressive, family or not) – so although we get along fine, I always wonder what may have happened.
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